Contracts for Difference Auction

Contracts for Difference (CfD) is the current support mechanism for lowcarbon electricity generation.

Introduced in 2015 as part of the Electricity Market Reform (EMR) programme, the mechanism provides a guaranteed price of electricity to successful generators. CfD are allocated via a competitive auction, with the aim of allocating support to those projects with the lowest cost, and in a manner that is broadly technology-neutral. Auctions are operated at pre-determined allocation rounds by the UK Government.

In determining their bidding strategy, potential bidders need to understand the competitive environment and, in particular, the number and likely price of other rival bidders. We have excellent experience in providing this support to potential bidders. Via our work for the UK Government, we track renewable projects in the UK through the planning system; keeping a real time update of all renewable energy projects. Using our commercial knowledge, we are also adept at developing financial models to appraise the likely bid prices of rival facilities.